India's Average AUM Of Fund Houses Drops In January

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On the back of less deployment of funds by banks in mutual fund schemes and in the midst of volatile equity markets, the average monthly Asset Under Management or AUM of top fund houses in India, such as HDFC MF, ICICI Prudential, Kotak Mahindra and UTI MF, witnessed a fall of 4% in January from a month earlier--the second straight month of drop since rising to a record high of Rs.807,556 crore in November, reports say quoting data of Association of Mutual Funds in India or AMFI.

The AUM of the top five fund houses--Reliance, HDFC, ICICI, UTI and Birla Sun Life--squeezed to Rs.427,522.93 crore in January from Rs.445,847.48 crore in December.

Total mutual funds' average assets under management dropped 4% to around Rs.762,000 crore in January from Rs.794,486 crore in December, data say.

Out of the 37 fund houses, 36 have declared their AAUM. Of these, 23 reported a fall in assets whereas only 13 saw a rise.

For the month under review, AUM for the 33 fund houses fell by 4.59% or Rs.30,467.70 crore to Rs.632,676.57 crore from Rs.663,144.24 crore in December last year. HDFC MF's AUM for January, 2010, stood at Rs 94,797.01 crore, a fall of Rs 2,386.83 crore or 2.46%, compared with Rs.97,183.84 crore in December 2009. Figures for India's largest fund house, Reliance MF, were not available.

Kotak Mahindra MF was down by Rs.4,620.42 crore or 11.16% to Rs.36,781.32 crore from Rs.41,401.74 crore in December. While UTI MF in January stood at Rs.74,509.86 crore, a fall of Rs.3,693.56 crore or 4.72%, compared with Rs.78,203.43 crore. However, few smaller fund house like Taurus MF, Baroda Pioneer and Canara Robeco MF posted some increase in their AUM.

India's stock markets fell sharply in January after two straight months of gains with the Bombay Stock Exchange's benchmark 30-stock Sensitive Index declining over 6% in the month.

(Market News Provided by RTTNews)